Fitch raised Pakistan’s rating to CCC from CCC-, reflecting improved external liquidity and funding conditions. Despite this, Fitch warns of risks due to political volatility and high external financing needs. Pakistan has revised its budget for FY24, implemented new revenue measures, and reduced spending. The country’s current account deficit has shrunk notably, with surpluses recorded from March-May and a forecasted deficit of about USD 4 bln for FY24.